We were approached by a small bank seeking assistance in building their governance and reporting framework. Initially, they had considered engaging one of the big 4 consultancies, but the cost exceeded their budgetary constraints.
Recognising our ability to deliver the required outcomes within their financial limits and given the time-sensitive nature of the project (there was a short deadline in place to meet a requirement from the Prudential Regulation Authority (PRA)), they chose to work with us.
The client presented us with several requirements, which included:
- Establishing effective governance and reporting structures for various Risk Committees.
- Overhauling the Chief Risk Officer’s (CRO) report to the Board.
- Reviewing the bank’s Risk Taxonomy and strategy.
- Developing a comprehensive suite of risk policies.
Working closely with the bank’s risk teams, we engaged in the following key activities:
- Established a Risk Oversight Committee responsible for providing assurance on the implementation and operation of the risk framework across the bank.
- Created an Executive Risk Committee tasked with reporting on Risks, Trends, Issues, and Risk Appetites for Credit Risk, Treasury Risk, Financial Crime, and Non-Financial Risk (IT Risk and Operational Risk).
- Designed and agreed upon committee stakeholders, Terms of References, and implemented clear reporting timelines and meeting frequencies.
- Developed templates for CRO reporting to the Board.
- Conducted a review and provided updates to the bank’s Risk Taxonomy and Risk Strategy plan, contributing suggestions for changes to be approved by the Board.
- Drafted a comprehensive suite of risk policies covering Operational Risk, IT Risk, Enterprise Risk, Credit Risk, Liquidity Risk, Market Risk, Capital Risk, and Data Governance.
At the completion of the project, our solutions provided the bank with a robust governance and reporting framework that aligned with industry best practices and regulatory requirements. The bank’s Risk Committees were equipped with effective oversight structures, and the CRO report to the Board was enhanced for improved decision-making. The updated Risk Taxonomy and refined Risk Strategy contributed to a more focused risk management approach. Additionally, the suite of risk policies ensured clarity and consistency in risk management practices across various risk domains.
To learn more about our expertise in building governance and reporting frameworks or to discuss how our services can benefit your organisation, please don’t hesitate to contact us. We are ready to assist you in strengthening your risk management practices and achieving your strategic objectives.
